Some Banks Keep Customers’ Stimulus Checks if Accounts Are Overdrawn [The New York Times]
New York Times Company (The) (NYT)
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Source: The New York Times
For some struggling Americans, the arrival of a deposit from the Treasury Department to help with basic expenses like rent and groceries during the coronavirus crisis was something to count on — until their financial institutions got in the way.That was what happened to Benji Pedro of Columbia, S.C. Because his account at Safe Federal Credit Union was overdrawn by $2,650, he had planned to ask the Treasury Department to mail him a check. But before he could, the agency deposited $1,200 into the overdrawn account on Wednesday, and a representative of the credit union told him that it was keeping all of it, Mr. Pedro said.Mr. Pedro, a 24-year-old recording artist who lives with his girlfriend and their child, said his account had been overdrawn because of subscriptions to two music services that he had forgotten to cancel.Representatives of Safe Federal Credit Union had no immediate comment.The phenomenon is swiftly becoming a political issue, with Treasury Secretary Steven Mnuchin fiel
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